Question

Reebies Food Store developed the following information in month of March recording its bank statement for $ 2,905 $10,900 Balance per books March 31 Balance per bank statement March 31 (1) Checks wniten in March but still outstanding $7,000 (2) Checks writtern in February but still outstanding $2.800 (3) Deposits of March 30 and 31 not yet recorded by bank $5,200 (4) NSF check of customer returned by bank $1,200. (5) Check No. 210 for $594 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $549 (6) Bank service charge for March was $50 (7) A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $824 when Check No. 318 was correctly prepared for $284. The check cleared the bank in March (8) The bank collected a note receivable for the company for $4,000 plus $150 interest revenue Prepare a bank reconciliation at March 31

Answer 1

Bank Reconcilation
Balance as Per Bank Statement		10900
Add
Deposit in transit		5200
Deduct
Check Outstanding (7000+2800)		9800
Adjusted Bank Balance		6300
Balance as per Book		2905
Add
Error in recording (824-284)	540
Note receivable plus interest	4150	4690
Deduct
NSF Check	1200
Error in recording (594-549)	45
Bank Service Charges	50	1295
Adjusted book Balance		6300